The information on the merger was disclosed last week by local media citing sources familiar with the matter from the two companies and SASAC Enterprise Reform Bureau. As informed, the integration of business operations was ordered by the government on September 2nd.

Both CMES and Sinotrans Air Transportation Development Co. Ltd said in separate filings to Shanghai stock exchange on Tuesday that following media reports both companies sent inquiries to their parent companies to seek clarification on the matter.

However, neither China Merchants Group nor Sinotrans could confirm the merger as neither of the two received a notice ordering the merger by the relevant authorities.

The announcement on the merger of yet another Chinese shipping duo came in anticipation of a merger between two other Chinese shipping majors, China Ocean Shipping Group (Cosco) and China Shipping Group, within the government efforts to consolidate state owned enterprises and curb losses stemming from overcapacity in the market.